The Crafter Company had the following assets and liabilities as of December 31, 2012: Determine the quick ratio for the end of the year (rounded to one decimal point).
A) 6.7
B) 13.0
C) 4.2
D) 3.5

Question

The Crafter Company had the following assets and liabilities as of December 31, 2012:  Determine the quick ratio for the end of the year (rounded to one decimal point).
A) 6.7 
B) 13.0 
C) 4.2 
D) 3.5

Quizplus · Accepted Answer

Quick Ratio = (Current Assets - Inventory) / Current Liabilities
= (135,000 - 25,000) / 25,000
= 4.2
Therefore, the correct choice is C.

The Crafter Company Had the Following Assets and Liabilities as of December